- Firm raw material costs underpin prices
- Weak demand keeps market activity subdued
Chinese silico manganese prices (Mn 65%, Si 17%) remained largely stable, inching up by RMB 40/t ($6/t) w-o-w to RMB 5,610 – 5,880/t ($798 – 837/t) exw, inclusive of taxes.
Silico manganese prices remained stable, supported by high raw material costs despite cautious buying due to weak downstream demand. Market activity stayed muted, with transactions largely limited to long-term contracts.
Market recap
Raw material market trends
Manganese ore prices remained elevated on limited overseas shipments and spot supply, despite moderate port inventories. Traders were reluctant to sell, while uncertainty around South Africa’s export policies and logistics disruptions extended delivery timelines, increasing procurement pressure for some companies.
Meanwhile, firm raw material prices provided strong support to silico manganese production costs and quotations.
Downstream trends
The stainless-steel sector maintained stable output, but weak end-user demand weighed on procurement sentiment, keeping silico manganese demand largely limited to essential restocking. Alloy producers faced margin pressure, showed low acceptance of high-priced raw materials, and adopted a cautious purchasing approach.
Market sentiment remained mixed, with upstream cost support offset by downstream price pressure, while producers showed limited willingness to cut prices. Transactions were dominated by long-term contracts, with spot market activity subdued and demand growth remained limited.
Outlook
Silico manganese prices are expected to remain range-bound in the near term, supported by high raw material costs, while gains are likely to be capped by weak downstream demand.
(With inputs from CBC)
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